Tax-loss harvesting is when you sell investments at a loss and use those losses to offset gains in other investments. You then take the money from the sale and use it to buy an investment that fills a similar role in your portfolio, so you stay ...

Written by Rocky Mengle, Attorney ... stock or other securities at a loss and then buy substantially identical stock or securities within 30 days before or 30 days after the sale....

You have a capital loss if you sell the asset for less than your adjusted basis. Losses from the sale of personal-use property, such as your home or car, aren't tax deductible. To correctly arrive at your net capital gain or loss, capital gains and losses are classified as long-term or short-term.

3 weeks ago - As the end of 2025 nears, investors ... ideal, but sometimes investments go sour. In such cases, all hope is not lost — at the end of the year, investors can sell investments that provided ......

December 17, 2024 - You recognize it's a risk to have a large concentrated position, but you're not excited about selling and paying taxes on the massive return the ... One option you have is to sell losing positions elsewhere in your portfolio to carve out a little room to rebalance. If you manage to find $5,000 in losses, for instance, you could sell just enough of that appreciated Nvidia position to realize $5,000 in gains, netting you out at zero. And what works for single stocks works just as well for exchange-traded funds (ETFs) or

Taking the loss could allow you to get your portfolio back on track more quickly—and potentially offset capital gains and/or ordinary income. If you've decided to sell some losers, it's important to understand a few of the applicable tax rules before you act: Short-term capital gains are taxed at ordinary federal income tax rates, which, for many taxpayers, are higher than the long-term capital gains rates of 0%, 15%, or 20%, depending on your income level.

December 8, 2025 - If your employer awards stock or stock-like bonuses, selling for a tax loss in anticipation of new stock awards being announced can be a good strategy to ensure your stock-based bonuses don’t accumulate more than you intend.

So, if you bought a stock on March 20, 2024, your holding period began on March 21, 2024. Thus, March 20, 2025, would mark one year of ownership for tax purposes. If you sold on March 20, you would have a short-term capital gain or loss.

September 30, 2025 - The IRS allows you to deduct capital losses on a stock or other investments from your taxable income. You will have to file Form 8949 and a Schedule D to report any losses. You may want to consult with a tax professional if your situation is complicated. Investing and taxes go hand-in-hand. When you sell a stock for a profit inside a taxable brokerage account, you’ll owe taxes on the realized gain.

When conducting these types of transactions, you should also be aware of the wash-sale rule, which states that if you sell a security at a loss and buy the same or a "substantially identical" security within 30 days before or after the sale, the ...

June 30, 2025 - “If a good part of your portfolio is up in value, while a smaller part is down,” Curtin says, “selling some of those ‘down’ investments at a loss — known as tax-loss harvesting — could help offset the tax you owe from selling ...

December 18, 2015 - Tax-loss harvesting involves selling assets at a loss to offset capital gains taxes on other investments and then replacing the sold assets with similar ones.

May 21, 2019 - Similarly, if the value of your ... profit locks in "realized gains," which will be taxed. However, you won't be taxed anything if you sell stock at a loss....

March 18, 2025 - According to Malvern-based financial firm Vanguard, “tax-loss harvesting is when you sell investments at a loss and use those losses to offset gains in other investments.

November 13, 2024 - The specific share identification method for cost-basis elections provides the most opportunities for tax-loss selling or gain harvesting because it allows you to cherry-pick specific lots of a security to sell. But it’s important to note that the average cost basis is usually the cost-basis election default for mutual funds, while the default cost basis election for individual stocks is often first in, first out.

August 27, 2025 - Be mindful of the wash sale rule which prohibits repurchasing a "substantially identical" security within 30 days before and after selling at a loss. Tax-loss harvesting is a financial strategy that allows investors to use capital losses from selling losing investments to offset capital gains from profitable ones, potentially reducing their tax liability. The IRS permits the technique under specific conditions and it can be applied to stocks, bonds, exchange-traded funds (ETFs), and even cryptocurrencies.

October 13, 2025 - It's generally better to take any capital losses in the year for which you are tax-liable for short-term gains, or in a year in which you have zero capital gains because that results in savings on your total ordinary income tax rate.

You must report all 1099-B transactions on Schedule D (Form 1040), Capital Gains and Losses and you may need to use Form 8949, Sales and Other Dispositions of Capital Assets. This is true even if there's no net capital gain subject to tax. You must determine if you meet the holding period. You meet the holding period requirement if you don't sell the stock until the end of the later of:

November 1, 2023 - The main limitation from a tax-laws standpoint individuals need to be aware of with tax-loss selling is what’s termed “superficial loss.” These rules look at the period of 30 days before and after the sale date, and will deny an individual’s ...